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BizReport : Advertising : April 25, 2012

RTB, Mobile show strong growth

Two reports - one a forecast and one a recap of Q1 2012 show strong impetus for both real time bidding and mobile advertising. According to Strategy Analytics mobile advertising should suprass $4 billion this year, and from Accordant Media news that RTB impressions are up more than 100%.

by Kristina Knight

Mobile ad spending, according to Strategy Analytics, will increase 85% through 2012 to reach more than $11 billion. Mobile advertising, meanwhile, is expected to reach $4.2 billion this year, an increase of more than 125%.

As for spending in the mobile space, consumers are expected to shell out more than $138 billion (globally) with US consumers expected to spend more than $33 billion. Most of this spending will be in the form of data plans and mobile Internet connections. However, mobile apps made a strong showing in 2011 and in 2012 apps are expected to account for about 20% of consumer's mobile spending.

"Advertisers chase eyeballs so the fact that brands spend more on in-app advertising than the mobile web is a clear sign that apps are what consumers are glued to for an increasing range of activities. In the eyes of many advertisers, web browsing on the smartphone is playing second fiddle to the app economy," said David MacQueen, Strategy Analytics' Director of Wireless Media Strategies.

Meanwhile, RTB (Real Time Bidding) has taken off in 2012, thanks in part to 2011's momentum. According to Accordant Media's tracking report RTB impressions grew 120% Year over Year while the supply of RTB impressions increased by more than 200%.

Most RTB trading and accounting stems from the US (47% of all impressions) with mobile the fastest growing sector for real time bidding. One interesting note, the use of RTB through social sites is apparently on the downslide. According to Accordant's reports the company reduced social-targeted buys for the quarter, citing social sites as not effective for this type of advertising.

Tags: Accordant Media, mobile advertising, mobile marketing, mobile spending, real time bidding, RTB advertising, Strategy Analytics

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